The Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act 2009 imposes obligations on businesses that provide certain financial services. These businesses are known as ‘reporting entities’. When registering as a financial service provider, you’ll be asked to declare whether or not you are a reporting entity.
Who is a reporting entity?
Reporting entities are defined in the AML/CFT Act, and supervised by 3 bodies – the Financial Markets Authority, the Reserve Bank of New Zealand, and the Department of Internal Affairs – according to the financial activity.
Not all financial service providers will be reporting entities, so it’s important to be sure about your status and responsibilities under the AML/CFT Act. Failure to meet your obligations could result in a significant fine, or even imprisonment.
For further information about reporting entities, please refer to the following websites. You may also wish to seek professional legal advice.